Taking out a mortgage on a house that you want to purchase is vastly different from getting a car loan or a personal loan. Given that it is a huge financial risk for the lender, the process is usually slightly more complex. To make sure that you get approval for the home loan you want, it is necessary to be prepared for what’s about to come. Here are some points to keep in mind:

• Work out your budget: It is important to not bite off more than you can chew. Before you even start looking at houses, make sure to crunch the numbers and check much you can afford to borrow from a lender. Ensure that your account for additional expenses like property taxes, repair costs, etc., to know how much you will need in hand. 

• Check your credit score: Your credit score will impact how much you can borrow and the interest that the lender will charge you. If you have a credit score that is not so great, you should consider improving it before you apply for a mortgage. 

• Gather your documents: Although you may not have started the mortgage application process, there is no harm in gathering the documents you will need to furnish to your lender. So, for instance, you’ll probably want to get your W-2 copies, paycheck stubs for the last month, investment proof, etc., ready.

• Avoid making large payments or taking out other loans: If you are looking to get approved for a mortgage, it is best to not make any big purchases, take out a new loan, or apply for a credit card. Doing any of these things may affect your credit score and financial standing, and can, in turn, cause the lender to reject your loan application. 

• Continue working at your job: During the mortgage process, you should attempt not to do anything that will change your income status. Quitting your job or taking on a lower-paying job will mean you earn less income, which may make the lender reject your application. 

• Try to pay off your debts: If you have saved enough to make the downpayment for your home, it’s not a bad idea to consider paying off some of your debts. The less money you owe, the better will be your debt-to-income ratio, thus increasing the chances of you getting approved for a mortgage. 

• Save enough for last-minute surprises: Apart from the down payment, ensure that you have enough saved up for closing costs like inspection costs, title insurance, legal fees, and loan origination fees, among others. Having some buffer money will ensure that you are able to comfortably complete the mortgage process and move into your new home. 

Keep in mind that if your mortgage application gets rejected, you may need to go over the process all over again. Keeping this in mind, it is best to be prepared before you start your application process.